"Ethical" stocks and share ISA

picju96

Hello,
Is it possible to get an "ethical" stocks and shares ISA? e.g. I wouldn't want to invest in tobacco companies and many funds seem to include these (presumably because they do quite well?)

Very new to investing and just trying to find out more before jumping in!

Thanks

dunstonh

s it possible to get an "ethical" stocks and shares ISA?

yes

Funds which class themselves as ethical are either positive, neutral or negative to a particular industry (i.e. avoid, indifferent or target). So, when you research, you need to match your ethics with the fund ethics. This is typically done by completing an ethical questionnaire which can then be used to filter funds to leave you with the ones that match your ethical position.

e.g. I wouldn't want to invest in tobacco companies and many funds seem to include these (presumably because they do quite well?)

You do have to accept that by going ethical, you are going to compromise your returns. There is usually a general risk warning added to ethical investments that you are likely to get lower returns over the long term because of the restrictions.

picju96

Perfect, thanks! Good to know that they are out there - I need to look a bit harder.

jimjames

Bear in mind that an ISA is just a wrapper so is neither ethical or anything else. What can be ethical is what you actually put in it so either choose shares you think are suitable (risky unless diversified) or buy an ethical fund that has already done the filtering for you - but may not meet your ethical definitions.